Crude Oil Prices Remain Volatile Near $95 per Barrel Amid Escalating Middle East Tensions, Gold Loses Ground

Commodity Markets React to Renewed Geopolitical Tensions

Commodity markets traded higher on April 20, with crude oil prices rising in response to renewed geopolitical tensions. The relief rally driven by hopes of easing strains in the Middle East, which had given way to a brief easing of war-driven risk premiums over the past two weeks, gave way to fresh caution after a weekend flare-up in US-Iran tensions.

Brent Crude Prices See Significant Gains Brent crude hovered around $95 per barrel, rising about 5 percent. This rebound comes after prices had slumped on Friday following Iran's declaration that the Strait of Hormuz was "completely open." The renewed disruptions in the Strait of Hormuz have brought volatility back into focus.

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Gold prices declined sharply, dropping as much as 1.9 percent to below $4,740 an ounce, erasing last week's gains. The decline followed comments from Donald Trump that the US Navy had fired upon and seized an Iranian-flagged cargo ship, while Tehran warned that vessels approaching the key waterway could be treated as violating the ceasefire. Spot gold fell 1.4 percent to $4,763.66 an ounce in Singapore, while silver dropped 1.7 percent to $79.50 an ounce. Platinum and palladium also traded lower. The Bloomberg Dollar Spot Index rose 0.2 percent.